Sensex up 231 points; automobile stocks rise

A benchmark index of Indian equities markets, the 30-scrip BSE Sensitive Index (Sensex), made healthy gains during the late afternoon trade session Thursday.

It was trading up 231 points or 0.81 percent as automobile, capital goods and consumer durables stocks made healthy gains. The market's rose after the Asian market's made gains on the back of easing of monetary policy in South Korea and Thailand.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the late afternoon trade session. It was up 56.50 points or 0.65 percent at 8,756.45 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 28,798.61 points, was trading at 28,890.04 points (2.30 p.m.), up 230.87 points or 0.81 percent from the previous day's close at 28,659.17 points.

The Sensex touched a high of 28,912.96 points and a low of 28,772.71 points in the trade so far.

All sector-based indices of the BSE made gains during the late afternoon trade session. Healthy buying was observed in automobile, capital goods, consumer durables, healthcare, bank, fast moving consumer goods (FMCG) and metal sectors.

The S&P BSE automobile index was up 249.96 points, followed by capital goods index which was higher by 185.48 points, consumer durables index rose 132.57 points, bank index went up by 113.90 points, healthcare index augmented by 123.85 points, FMCG index gained 112.77 points and metal index increased 100.75 points.

The day's gains comes after three consecutive session of losses. On Wednesday, the Sensex closed 51 points or 0.18 percent down. It had closed Tuesday's trade lower by 135 points or 0.47 percent, while on Monday it plunged 604 points or 2.05 percent. The Indian markets so far this week have reacted negatively to the sharp increase in the US non-farm payroll data for January.

The Indian markets were anxious as rapid increases in non-farm payroll data might lead to an increase in inflation. This can make the US Federal Reserve raise interest rates sooner than previously expected.

With higher interest rates, foreign institutional investors will be led away from emerging markets such as India.